Gartner (IT) told investors that growth was accelerating. Contract value was expected to keep building. And management projected a path back toward double-digit growth. But that story started to crack.
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A federal securities lawsuit filed against Gartner, Inc. and two of its top executives claims the company repeatedly misled investors about the strength of its contract value growth and consulting revenue outlook, which plaintiffs allege led to two sharp stock price declines totaling tens of dollars per share.
The lawsuit, filed in the United States District Court for the District of Connecticut on March 17, 2026, covers purchases of Gartner common stock (NYSE: IT) between February 4, 2025, and February 2, 2026, the alleged class period. According to the complaint, shares dropped approximately 27.55% on August 5, 2025, from $336.71 to $243.93, and then fell another 20.87% on February 3, 2026, from $202.40 to $160.16, following what plaintiffs describe as corrective disclosures that revealed the company’s true growth trajectory.
Investors who purchased Gartner stock during the class period and incurred losses are encouraged to explore their legal options.
What Gartner Does and Why Its Contract Value Matters to Investors
Gartner is a global firm that provides technology and business insights to clients through guidance tools, conferences, and direct consulting services. The company operates through three segments: Business and Technology Insights, Conferences, and Consulting. Contract value, or CV, is a key Gartner metric that reflects the annualized value of contracts in effect at a given time and is used by the company as an important indicator of revenue growth.
The complaint alleges that Gartner’s management was aware of factors that were allegedly undermining its ability to sustain CV growth, including headwinds tied to U.S. federal government policy changes and macroeconomic uncertainty driven by tariffs. Plaintiffs argue that those risks were known but were not adequately disclosed to the investing public during the class period.
What the Lawsuit Alleges Gartner Got Wrong
The central allegation is that Gartner and its executives made a series of materially false and misleading statements, projecting strong and accelerating contract value growth while concealing their awareness of significant headwinds already eroding that growth. The complaint alleges that the company’s repeated claims of achieving 12% to 16% CV growth in a “normal” macroeconomic environment were unrealistic and presented without adequate warnings about the deteriorating environment.
Plaintiffs also allege that defendants failed to disclose known risks to the Consulting segment’s revenue performance and that the company allegedly lacked a reasonable basis for the level of confidence it expressed to investors.
Those who held Gartner shares during the class period and believe they were affected are encouraged to stay informed as the case develops.
What Gartner’s Executives Said During the Class Period
On February 4, 2025, CFO Craig Safian stated during an earnings call that Gartner had “very good visibility into 2025 revenue” and that the company’s guidance reflected “CV continuing to accelerate during 2025.” He projected research revenue of at least $5.365 billion and consulting revenue of at least $565 million, framing the guidance as “achievable with opportunity for upside.”
CEO Eugene Hall added that in a “normal” macro environment, with 12% to 16% research CV growth, the company would deliver double-digit revenue growth. On May 6, 2025, following the announcement of significant U.S. tariffs, Hall stated the company planned to “exit the current environment better, faster and stronger than before,” while Safian affirmed that Gartner’s “multiyear contracts are true multiyear contracts” with no exit clauses, designed to create “resilience” against short-term macro challenges. On November 4, 2025, Hall stated that the selling environment among tariff-impacted companies was “starting to improve,” while Safian said Gartner was “positioned to accelerate CV growth in 2026.”
How the Alleged Truth Came to Light
On August 5, 2025, Gartner reported second-quarter results revealing that overall CV growth had slowed from 7% to 5%, and ex-federal CV growth had dropped from 8% to 6%. The stock fell from $336.71 to $243.93 in a single trading session, a decline of approximately 27.55%.
On February 3, 2026, Gartner disclosed its fourth quarter and full year results, showing that non-federal CV growth had fallen further from 6% to approximately 4%, and that the Consulting segment had significantly underperformed internal projections, with full year consulting revenue of $552 million compared to $559 million the prior year and below the guidance the company had maintained throughout the year. Shares fell from $202.40 to $160.16 the following day, a decline of nearly 20.87%. According to analysts cited in the complaint, the CV growth deceleration exceeded even their most pessimistic forecasts, and the Consulting segment came in roughly $24 million below at least one analyst model.
Why These Allegations Are Relevant to Gartner Shareholders
Plaintiffs allege that investors purchased Gartner shares at artificially inflated prices because the company presented an optimistiC, confident picture of its growth trajectory without adequately disclosing the factors that were already undermining it. When the alleged truth emerged through two separate corrective disclosures, the stock suffered dramatic single-day declines that the complaint connects directly to those prior misrepresentations.
Shareholders who held positions in Gartner during the February 4, 2025, to February 2, 2026, class period and sustained losses may have legal recourse depending on when they bought and at what price.
The Legal Claims Filed Against Gartner
The complaint asserts violations of Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, which prohibit materially false or misleading statements in connection with the purchase or sale of securities. Plaintiffs allege that Gartner, Hall, and Safian knowingly or recklessly misrepresented the company’s contract value growth outlook and consulting segment performance while omitting material adverse information about the actual state of the business.
A second count under Section 20(a) of the Exchange Act names Hall and Safian individually as controlling persons who directed or approved the alleged misconduct.
Investors who purchased Gartner common stock during the class period and wish to understand their potential legal rights are encouraged to seek more information.
About Levi & Korsinsky, LLP
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